DMP & Mutual Support Thread - Part 11

Triangle

Debtfreehopeful wrote: »

Been looking on this page now for a few weeks and finally plucking up the courage to ask you wonderful people for some advice please ��

I want to use stepchange to set up my DMP before finally self managing it- do they ask for proof of income and expenditure?

Also I need to set up a basic bank account and wondered if you can advise a bank not linked with my below creditors-
Santander
Tesco
Vanquis
Aqua
Very
Next

So my plan of action is-
To set up a basic bank account
**Not sure about this- to take money out of my bank account to use the available overdraft, and withdraw cash from credit cards- will there be repercussions? Looking to build up an emergency fund
Set up a DMP via Step change- to be effective in about 4 months time
Set up a self managed DMP after a few months- once creditors have agreed to token payments
To try and get my accounts defaulted and settle these accounts at a reduced rate

Any further tips or advice is greatly appreciated- so looking forward to not constantly worrying about money and the stress that goes with it!
Sorry to ask so many questions- just want to get everything clear in my mind...

I have a basic account with Nationwide which I would recommend

January2015

Debtfreehopeful wrote: »

Been looking on this page now for a few weeks and finally plucking up the courage to ask you wonderful people for some advice please ��

I want to use stepchange to set up my DMP before finally self managing it- do they ask for proof of income and expenditure?

Also I need to set up a basic bank account and wondered if you can advise a bank not linked with my below creditors-
Santander
Tesco
Vanquis
Aqua
Very
Next

So my plan of action is-
To set up a basic bank account
**Not sure about this- to take money out of my bank account to use the available overdraft, and withdraw cash from credit cards- will there be repercussions? Looking to build up an emergency fund
Set up a DMP via Step change- to be effective in about 4 months time
Set up a self managed DMP after a few months- once creditors have agreed to token payments
To try and get my accounts defaulted and settle these accounts at a reduced rate

Any further tips or advice is greatly appreciated- so looking forward to not constantly worrying about money and the stress that goes with it!
Sorry to ask so many questions- just want to get everything clear in my mind...

Another vote for Nationwide Flex Basic Account here. I also have a Yorkshire Bank basic account - the Nationwide Flex really is more flexible to use, e.g. online basic less of a chore.

I also maxed out our overdraft and drew out cash on the credit cards immediately before starting the DMP - well we needed to live No repercussions from creditors - so don't worry if you need to do this, but obviously your debt total will go up a bit.

Go for either zero or token payments for as long as you can

January2015

mica2 wrote: »

Yep reading everything!! I cancelled a couple of CC direct debits yesterday hoping it will motivate me to get the ball rolling! I couldn't find the courage to cancel the loan though It's cos it;s the biggest debt and it scared me reading the contract about what they'll do if I miss a payment. Think I will wait until I've contacted SC.

So glad Motivated is in the same position as me! I also have got a basic bank account. Am wondering what to do though now, I feel like moving my salary and direct debits could get me in a muddle.

I'd start the ball rolling with moving salary credits and direct debits to the new bank account - obviously make sure you have enough credit in there before any DDs are likely to come out

It feels awkward and as if things will get muddled, but it really does just all come out in the wash and in a couple of months you will wonder why you were worried about any of it

mica2

January2015 wrote: »

I'd start the ball rolling with moving salary credits and direct debits to the new bank account - obviously make sure you have enough credit in there before any DDs are likely to come out

It feels awkward and as if things will get muddled, but it really does just all come out in the wash and in a couple of months you will wonder why you were worried about any of it

Thanks a million! I've just also seen another newbie posting the same questions as me so i don't feel so silly now, we've all been on the same journey.

mica2

Debtfreehopeful wrote: »

Been looking on this page now for a few weeks and finally plucking up the courage to ask you wonderful people for some advice please ��

I want to use stepchange to set up my DMP before finally self managing it- do they ask for proof of income and expenditure?

Also I need to set up a basic bank account and wondered if you can advise a bank not linked with my below creditors-
Santander
Tesco
Vanquis
Aqua
Very
Next

So my plan of action is-
To set up a basic bank account
**Not sure about this- to take money out of my bank account to use the available overdraft, and withdraw cash from credit cards- will there be repercussions? Looking to build up an emergency fund
Set up a DMP via Step change- to be effective in about 4 months time
Set up a self managed DMP after a few months- once creditors have agreed to token payments
To try and get my accounts defaulted and settle these accounts at a reduced rate

Any further tips or advice is greatly appreciated- so looking forward to not constantly worrying about money and the stress that goes with it!
Sorry to ask so many questions- just want to get everything clear in my mind...

I'm at the same stage as you! I have a basic ban account with nationwide but I'm now wondering to transfer all my banking to it. I've already taken out a fair bit of cash from a cc to set aside, might do the same with my overdraft. It's hard to have the courage though!

Debtfreehopeful

mica2 wrote: »

I'm at the same stage as you! I have a basic ban account with nationwide but I'm now wondering to transfer all my banking to it. I've already taken out a fair bit of cash from a cc to set aside, might do the same with my overdraft. It's hard to have the courage though!

It's nice that you're not on your own going through this journey- and for the invaluable support and advice on here :beer:

heavenlyharry01

mica2 wrote: »

I'm at the same stage as you! I have a basic ban account with nationwide but I'm now wondering to transfer all my banking to it. I've already taken out a fair bit of cash from a cc to set aside, might do the same with my overdraft. It's hard to have the courage though!

I would say to swap all your banking as soon as you can. It's easier than you think, I called all the necessary direct debit companies and some I even did on line to swap them over.
Also informed work of my new bank account.

I wish I thought about drawing out money from cc's, we bought a couple of things before we set up the DMP, but I never thought about an emergency fund. StepChange never advised us to get funds together either.....it really is vital.

Debtfreehopeful

heavenlyharry01 wrote: »

I would say to swap all your banking as soon as you can. It's easier than you think, I called all the necessary direct debit companies and some I even did on line to swap them over.
Also informed work of my new bank account.

I wish I thought about drawing out money from cc's, we bought a couple of things before we set up the DMP, but I never thought about an emergency fund. StepChange never advised us to get funds together either.....it really is vital.

Did Stepchange ask for any paperwork i.e tenancy agreement, council tax letter, utility bills, payslips, bank statements? Looking to get everything together as soon as possible to get the ball rolling.

January2015

mica2 wrote: »

Thanks a million! I've just also seen another newbie posting the same questions as me so i don't feel so silly now, we've all been on the same journey.

It's great when see another new user going through the same stages as you. I remember when I started that Ploppy57 was my 'new user friend'. Ploppy still posts occasionally and I know from personal messages I get from her that she is still plodding through with her DMP.

Some people keep visiting and posting (er.....that's me in that group then :rotfl:) and others just visit occasionally. Whatever you find works for you, the gang is always here for you when you visit the forum Personally, I find the motivation of visiting the forum and reading others posts really helps me stay focussed on my goal to become debt free

Billy12345

Debtfreehopeful wrote: »

Did Stepchange ask for any paperwork i.e tenancy agreement, council tax letter, utility bills, payslips, bank statements? Looking to get everything together as soon as possible to get the ball rolling.

Hi, the only thing SC asked me for was a copy of my payslip within the last three months, just done an up to date assessment and they never asked me for anything else. Some of the other more experienced people may know more but mine was really easy. Dont forget though to give yourself some wiggle room. I took mine to the bone and found i was paying more than i could afford so have recently dropped the payments, no issues from the creditors yet though. :money: